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SESSION 202 Monday, November 2, 11:30am - 12:30pm
Track: Continual Service Improvement
Lean IT as a Practical CSI Methodology
Troy DuMoulin VP, Research and Product Development, Pink Elephant [email protected]
Session Description
Simply put, Lean IT improvement methods focus on achieving customer value while eliminating wasted steps and optimizing process value streams. While ITIL does a good job of describing the concept of continual service improvement, Lean takes it one step further to give you practical and repeatable tools to accomplish this important goal. This session will explain Lean major guiding principles and improvement methods and how they used to enable continual service improvement. Attendees will walk away with an understanding of what Lean IT is and why they should never design or improve another process without considering it through a Lean lens. (Experience Level: Advanced)
Speaker Background Troy DuMoulin is a leading ITIL and IT governance authority with extensive experience in executive IT management consulting. Troy is an ITIL Expert and has led many ITSM programs with regional and global scope. He’s a frequent speaker at IT management events and is a contributing author to multiple ITSM and lean IT books, papers, and official ITIL publications.
Lean IT as a Practical CSI Methodology
Troy DuMoulin VP, Research, Innovation & Product Development
Pink Elephant
Welcome & Agenda 1. Applying Lean To IT Value Streams
2. The Impact Of Culture On Flow
3. The Importance Of standard Work &
Incremental Improvement
4. Working Smarter Not Harder
Objective
Understand how IT organizations may adopt
proven Lean IT assessment and improvement
practices to identify waste, improve efficiency
and the overall speed of execution.
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Lean Is
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A Strategy for Operational Excellence based on Clearly Defined
Values to Engage People in Continuously Improving Safety,
Moral, Quality, Cost and Productivity
Jeffery Liker – Lean Leadership At Every Level
RISK GAP Lack of availability,
performance, reliability, quality
Process Requirements Increasing number of products and services
Increasing rate of change
Increasing complexity/data interdependency
Increased speed and efficiency
Increased speed to market
Reduced costs
IT Process Capabilities Silo/Fragmented/Redundant processes
Lack of integration, automation
Lack of visibility
Operating as a mature IT Service Provider requires consistent management processes across silos!
The “Risk Gap” For Business Growth Goals
Scalability of Management Processes Over Time
Increa
sed B
usin
ess Need
Of IT Services
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Lean Is A Way Of Thinking & Acting
Lean thinking and acting is all about:
• Increasing customer value • Eliminating waste • Management as facilitator • Involvement of all employees • Continual Improvement
“Preserving value with less work.”
Stability Robustness
5S Kaizen
Standard Working
Heijunka
Just in Time Jidoka
Quality
Delivery Costs
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What Is Lean IT?
“Lean IT is the extension of lean manufacturing and lean services principles to the development and management of information technology products and services. Its goal
is to continuously improve the value delivered by IT organizations to their customers and the professionalism
of IT people.”
Source: Lean IT Association
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Copyright © 2015 Lean IT Association
The Nature Of Change
Kaizen – Incremental Change
Kaikaku – Large Step Change
Kakushin – Transformational Change
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The Importance of Standard Work
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Kai
zen
Kai
zen
Standard Work
Standard Work
Without a standard there can be no Kaizen
Standard work must evolve and change
Standard work is the basis for stabilization
Standard work removes subjectivity
Without a standard it is not possible to understand if the change is an improvement
Standard work sustains the Kaizen outcomes
Standard work establishes the best (fit for purpose) methods and
sequence for each process and each stakeholder
Process: Series Of Actions Triggered By Customer Demand
A series of actions that must be performed correctly in the correct sequence at the correct time to create value for a customer
On an abstract level, organizations have three processes:
Design: Concept to launch – product and process development
Delivery: From order intake to product delivery
Support: Customer use during life of the product
Lean Process Characteristics
Primary Processes
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IT Value System – Partner Network
Customer Engagement
Plan/Build Management
Operations Excellence
Governance
Continual Improvement
Monitoring Reporting
Service/Process Improvement – Efficiency/Effectiveness
Strategy/Planning Demand
Resource Capacity Priorities/Scheduling Process Ownership
Compliance Financial
Business Relationship Mgmt. Demand Management
Service Catalog
Strategy/Design/Transition Operational Goal: Manage service operations to maximize customer outcomes and minimize cost
Operational Goal: Manage the risk and resources to deliver quality, cost-effective services and service enhancements
Operational Goal: Understanding and managing customer needs, requirements and expectations to solve business problems and deliver value
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Velocity Vs. Agility
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Velocity = Speed With Direction!
Is Enterprise IT A Myth?
Demand Plan Build Run
The Challenge Of DevOps & Silo Mentality
Time & Money Stability & Control
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Transition Planning
Change R + DM SACM T + Validation Evaluation Knowledge
Strategy Management
Demand Portfolio Finance
Factory Store Front Delivery & Support
BRM
Catalog
Request Fulfillment
Service Desk
Incident Mgmt.
Application & Infrastructure Maintenance
Design Coordination
Security Availability Capacity ITSCM Supplier SLM, SCAT
Project Portfolio
Operations
Event Incident Request Problem Access
Bu
siness Services
Ap
plicatio
n Layer
Infrastru
cture Layer
Data Layer
Professional Services
Data Center Environment
Network Facilities
Techn
ical Service
s
Lessons Learned
Charter
Initialize
Plan/Build
Implement
Stabilize
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Create continuous flow in production with the Just-in-Time approach and reduce peak and low volumes
Lean – Customer Value At The Center
Assess if all the activities in the process add value in the eyes of the customer
Demand triggers the process chain in order to reduce stock
First time right Focus on quality and prevention of defects
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The Problem – The Dualistic Nature Of IT Cultures
The concept that the IT Organization is conflicted by seemingly antagonistic goals
Provide stable, secure and reliable IT Services
Respond quickly to
urgent business needs
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Proactive Problem Solving
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Reactive vs. Proactive Problem Solving
Lean is not just about hunting down waste and reacting to the crisis of the day. Its goal is to move an organization to a desired state through relentless
problem solving and incremental improvement.
DMAIC CSI Methodology
Control
Improve Analyze
Define
Measure
IMPROVE MEASURE DEFINE CONTROL ANALYZE
Ishikawa Quick Wins (Identify)
Quick Wins (Implement)
VOC
SIPOC (Current)
SIPOC (Revised)
5 Why’s VSM (Current)
VSM (Future)
Pareto
KPIs (Monitor)
KPIs
CTQ KPIs
(Updated)
Problem Solving Methodology
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Preserving Value With The Least Effort
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The 3 M’s Of Waste
• Muda – Unnecessary, Non Value
• Mura – Variation, Variance
• Muri – Over Burdened
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Value-Add: Work that adds Value in the eyes of the customer that they are willing to pay for: Application development Server Maintenance
Non-Value-Add: Work that does not add Value for the customer or the business: Redundant work Solving IT incidents Doing more than required
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Optimize
Minimize
Remove
Lean – Three Types Of Activities
Necessary Non-Value-Add: Work that is not “Value-Add” but must be done: Recruiting staff Finance and accounting Application testing
Flow Killers
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• Defects/Incidents
• Re-work
• Problems
• Variation
• In-flexibility
• Over-burden
• Over production
• Waiting
• Over processing
• Bottlenecks
Examples Of IT Waste
Multiple Service Desks all with their own tools and separate processes
Massive amounts of wasted server capacity due to a lack of Capacity and
Demand Management
Redundant and duplicate IT Management tools being purchased by various IT
departments in the same organization
Redundant IT groups and stealth data centers being built by “independent” parts of the business
A willingness to solve the same Incidents 1000s of times without looking at the
root of the problem
Multiple Change Management processes due to political boundaries
Losing track of tens of thousands of dollars of IT assets due to poor tracking
controls and inventory processes
Supplier contracts expiring without knowledge until an Incident occurs
A willingness to supply multiple/duplicate versions of the same services
The total lack of ability to provide visibility into the cost of an IT service
The list goes on...
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Lean IT Association
What Do I Do Tomorrow?
• Troy’s Blog: blogs.pinkelephant.com/troy
– PR 63 – Using Lean Visual Management For ITSM
– PR 59 – Lean IT – Gaining Sr. Leadership Buy In
– PR 18 – TOC, LEAN & Six Sigma The Three CSI Sisters
– Using Lean Principles For Effective CSI
• Education:
• Lean IT Foundation: Using Lean Principles For Continual Service Improvement
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Combining Lean IT & ITSM To Enable Grass Roots Continual Service Improvement © Pink Elephant, 2015. All Rights Reserved.
Questions?
Troy DuMoulin
blogs.pinkelephant.com/troy
@TroyDuMoulin
APMG-International Lean IT™ is a trade mark of The APM Group Limited.
Thank you for attending this session.
Please don’t forget to complete an evaluation form!